Pubdate: Fri, 29 Mar 2002
Source: Deseret News (UT)
Copyright: 2002 Deseret News Publishing Corp.
Contact:  http://www.desnews.com/
Details: http://www.mapinc.org/media/124
Author: Tom Callahan
Note: Thomas Callahan is senior vice president of Workers Compensation 
Fund, which provides workers compensation insurance to nearly 60 percent of 
Utah companies.

FOCUS ON WORKPLACE SAFETY

Over the past five years, Utah businesses have experienced record-low 
workers' compensation insurance premiums. But 2002 will take a different turn.

While Utah's rates remain lower than most in the country, Utah companies 
will pay an average of 20 to 25 percent more for coverage.

Even with the premium increase, however, most Utah businesses will be 
paying what could be considered "discount" premiums - less than what many 
paid in 1996. And while some factors contributing to the premium increase 
are out of anyone's control, including the events of Sept. 11, Utah 
companies themselves play a large part in controlling the cost of their 
premiums.

Research indicates that because of past record-low premiums and the recent 
past's booming economy, many businesses lost their commitment to workplace 
safety, resulting in a rise in both the frequency and severity of accidents.

Last year, workers compensation insurance companies in Utah recorded a 
dramatic increase in the severity of on-the-job injuries. And this increase 
is the primary reason why workers compensation insurance premiums will 
increase this year.

But there is some good news. Companies with a strong commitment to safety 
and a good safety record will still pay more, but those that have lost 
their focus on workplace safety will see dramatic increases.

Companies striving to keep their workers compensation insurance premiums at 
a minimum must focus on two key areas: reducing the number of accidents and 
managing costs for those accidents that do happen, including aggressive 
return-to-work programs.

As the largest underwriter of workers compensation insurance in Utah, 
Workers Compensation Fund (WCF) wants to help Utah companies recommit to 
making workplace safety a priority. Many businesses have made great efforts 
to emphasize safety over the years, but now is the time to update and 
re-emphasize established programs.

Here are a few things businesses can do now to recommit to workplace safety:

1. Develop and enforce a safety program specific to your company. Every 
company - whether in a hazardous industry or not - should have a workplace 
safety program in place. According to the National Safety Council, the 
average cost of one lost-time accident ranges from $12,000 to $16,000. 
Every employee, even seasoned and skilled workers, should review the 
correct procedures to ensure a safe workplace for all. For small-business 
owners, a serious accident could cripple - if not devastate - their company.

2. Test employees for substance abuse. Nationally, drug and alcohol abuse 
costs businesses $100 billion annually in medical expenses, lost time and 
productivity, stolen property, insurance premiums and employee assistance 
programs. Employers should have a zero-tolerance drug and alcohol policy in 
effect and test their employees randomly, especially if their business 
involves any sort of dangerous work.

3. Be precise and efficient when reporting and managing claims. Accidents 
should not be taken lightly. Injured employees and their supervisors should 
fill out the required reports as soon as possible after the accident to 
help determine the cause.

By quickly reporting the injury to their insurance company via phone, 
Internet or mail, businesses take a proactive approach in managing claims. 
And in turn, the company can help the injured worker begin the recovery 
process, both physically and financially.

4. Institute programs allowing recovering workers to return to light- duty 
assignments. Employees and businesses benefit when an employee returns 
earlier than expected if they can be accommodated within the doctor's 
recommended capabilities.

If we are to properly protect our work force and keep overall workers 
compensation premiums at reasonable levels for Utah employers, everyone 
must make workplace safety a priority.
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MAP posted-by: Beth